Venezia: New plan could revolutionize marketing of Newport Beach

In March I started asking questions about a new task force that brought together members of the Newport Chamber of Commerce and Visit Newport Beach – the city's conference and visitor's bureau – to explore a new model.

Did this indicate that one of these organizations was in trouble?

Considering Visit Newport was the more financially stable of the two, it would seem the one on the ropes was the chamber.

By April things weren't going well. And though talks broke down, Visit Newport has been moving forward with a new plan that could revolutionize and streamline how Newport is marketed – chamber or no chamber.

Gary Sherwin, president of Visit Newport, explained this new organization to me.

At the heart of it is a new tax-exempt nonprofit called Newport Beach & Co., which will have the same board as Visit Newport. It will be funded by the city's Transient Occupancy Tax.

Currently, Visit Newport receives 18 percent of the funds raised by the tax – about $3.7 million this year alone, Sherwin says.

Branching out from this organization are various divisions, each with a specific function. Think of Newport Beach & Co. as the sun, which is circled by planets – the divisions – such as the Newport Beach Foundation, Film Newport Beach, Celebrate Newport Beach, Dine Newport Beach, Enterprise Newport Beach and Visit Newport Beach.

"We basically become the city's marketing agency and the divisions are like individual clients with the chief purpose to support the city of Newport Beach," Sherwin says.

The Visit Newport entity remains and will be funded by the Tourism Business Improvement District, which six major hotels in the city already contribute to through a 2 percent tax. This brought in about $1.5 million last year, he says.

So what functions do these divisions serve in this new organization?

The Newport Beach Foundation will be a nonprofit charitable fundraising entity with a five-member board, which former mayor Denny O'Neil is slated to head.

"They will help the economic cause, have their own governance system and will be a business-oriented charitable endeavor," Sherwin told me.

Film Newport Beach will work to attract film companies and garner revenue from permits.

Dine Newport Beach will bring the city's restaurant business improvement district into focus and streamline its marketing.

Sherwin chooses his words carefully when he explains the last two divisions in this solar system: Enterprise Newport Beach and Celebrate Newport Beach. Both clearly tip-toe into chamber territory.

He says that a business improvement district recently spent money to create a map which, unbeknownst to them, Visit Newport already had. If the two were synced, the district could've saved time and money.

Sherwin and Johnson tell me the articles of incorporation for this new organization have been submitted to the Secretary of State.

Once approved, they hope to roll out in January.

Johnson tells me they've had initial conversations with the city about the film portion and met with the Restaurant Association as well as several Business Improvement Districts.

Legally, Visit Newport Beach doesn't need City Council approval to begin down this new path, but they certainly need the city's cooperation and blessing if it's going to work.

Of course no one's talking about this publicly, but if this plan moves forward, it basically renders the chamber obsolete.

This isn't going unnoticed by the chamber board, which is why they're holding meetings this week.

I called chamber President and CEO Richard Luehrs to ask about a meeting on Monday and if he was aware of Sherwin's new plan. He is.

I asked if there was discussion about selling the boat parade event at that meeting.

He said yes, but wouldn't give details.

Was there discussion about Sherwin's plan and how the chamber fit into it?

"It's premature to talk about it," Luehrs told me. "There will be another meeting this week which will include members of the chamber, other organizations and Visit Newport Beach."

I asked if he sees himself included in Newport Beach & Co., or if he is thinking of retirement?

"Retirement is in my future," he said with a laugh. "When that will occur remains to be seen."

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